Britain one step closer to quitting Europe after vote on Jean-Claude Juncker

Peter Dominiczak and Bruno Waterfield in Brussels

Battleground: British Prime Minister David Cameron addresses the media after the vote. Photo: AP

Britain moved a step closer to leaving the European Union on Friday after David Cameron declared "war" on Brussels over the nomination of Jean-Claude Juncker.

Keeping Britain in the EU "has got harder", Mr Cameron said, after he was outvoted by 26 to two in his bid to prevent Mr Juncker becoming the European Commission president. The result emboldened Eurosceptic MPs and Ukip supporters who want to leave the EU. However, Mr Cameron said he would now wage a "long, tough fight" to reform Brussels before campaigning for Britain to remain in the EU in an in-out referendum he has promised to hold in 2017.

The Prime Minister said the decision to nominate Mr Juncker, an arch-federalist facing questions about his drinking habits, represented "a sad day for the EU". Mr Cameron said: "My colleagues on the European Council know that I'm deadly serious about EU reform - that I keep my word. I've said I'm not going to back down. I won't.

Mr Juncker and Mrs Merkel last year: She denied any "backroom deals" had been done over Mr Juncker's nomination. Photo: AP

"This is going to be a long, tough fight. And frankly sometimes you have to be ready to lose a battle in order to win a war.

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"It has only stiffened my resolve to fight for reform in the EU because it is crying out for it. It has made me even more determined to make the EU address the concerns of all those voters who are intensely frustrated with it and demand better because they deserve a voice."

A photograph emerged last night showing Mr Juncker in a Brussels bar before the vote. European leaders have discussed concerns about his drinking and questioned whether he was suitable to be commission president.

There had been speculation that the appointment of Mr Juncker could result in Mr Cameron campaigning to leave the EU if the new president made it impossible to reform Britain's relationship with Brussels.

However, when asked directly if he could end up recommending a British exit in a referendum, he said: "I believe Britain's national interest lies in reforming the EU, holding a referendum about that reform in the EU and recommending that we stay in a reformed European Union.

"Has that got harder to achieve? Yes. Is it still the right thing to do? Yes. Will I give it absolutely everything I have got to achieve it? Yes, I will."

Ed Miliband, the Labour leader, said Mr Cameron had suffered "humiliation" in Europe. But Mr Cameron said he had taken a "principled" stand and "would do it all over again in pretty much the same way".

The Prime Minister criticised the "cosy deals" done by European leaders including Angela Merkel, the German chancellor, who had privately backed him over his plans to stop Mr Juncker before switching her allegiance due to domestic political concerns.

"There's a sense in this place that people say one thing and then they get in the cosy crowded room and they all just go along with the flow and appoint, to this job, the career insider in Brussels," he said.

In a consolation prize for Mr Cameron, European leaders agreed that Britain would not be asked to transfer more sovereignty to Brussels.

However, they appeared to rule out Mr Cameron's demand for powers to flow back to national capitals.

Mrs Merkel said she hoped that British voters would not choose to leave the EU. She said: "I have a great interest in Great Britain staying a member of the European Union. In this spirit I will continue to work."

Mrs Merkel also denied that any "backroom deals" had been done over Mr Juncker's nomination.

Over a tense lunch yesterday, Mr Cameron warned EU leaders that they "could live to regret" the decision to allow Mr Juncker to be appointed.

He was supported only by Hungary when he forced the issue to an unprecedented vote. Downing Street said Mr Cameron wanted to make EU leaders "put their support for Mr Juncker on the record".

Nigel Farage, the UK Independence Party leader, said last night it was "game, set and match to Brussels".

"David Cameron thought he could put together a coalition of countries to form a blocking minority," he said. "His judgment has been woeful."